Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Emcure Pharmaceuticals / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/emcure-pharmaceuticals-ltd" target="_blank" data-smartkarma-citation="entities:35585:1" rel="noopener">Emcure Pharmaceuticals</a> is looking to raise around US$240m in its upcoming India IPO.</li>
<li>Emcure Pharmaceuticals (EP) is an Indian Pharmaceutical company engaged in the developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.</li>
<li>We have looked at the company’s past performance, in our earlier note. In this note, we talk about the RHP updates and take a quick look at valuations.</li>
</ul>



Emcure Pharmaceuticals is looking to raise around US$240m in its upcoming India IPO.
Emcure Pharmaceuticals (EP) is an Indian Pharmaceutical company engaged in the developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.
We have looked at the company’s past performance, in our earlier note. In this note, we talk about the RHP updates and take a quick look at valuations.


Emcure Pharmaceuticals Pre-IPO - Refiling Updates and Valuations

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Emcure Pharmaceuticals seeks to raise INR19.5B in upcoming IPO through a fresh issue of INR8B and an OFS of 11.4M shares. IPO price band has been set at INR960–1,008.</li>
<li>The issue will open for subscription on July 3 and close on July 5. Bidding for anchor investors will open on July 2. Lot size for bidding is 14 shares.</li>
<li>IPO proceeds will be used to repay debt. As at March 31, 2024, the company’s outstanding borrowings stood at INR21B against cash balance of INR2B.  </li>
</ul>


Emcure Pharmaceuticals seeks to raise INR19.5B in upcoming IPO through a fresh issue of INR8B and an OFS of 11.4M shares. IPO price band has been set at INR960–1,008.
The issue will open for subscription on July 3 and close on July 5. Bidding for anchor investors will open on July 2. Lot size for bidding is 14 shares.
IPO proceeds will be used to repay debt. As at March 31, 2024, the company’s outstanding borrowings stood at INR21B against cash balance of INR2B.  


Emcure Pharmaceuticals Pre-IPO: IPO Price Band Set; Steep Valuation Offers Limited Upside Potential

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dr-reddy-s-laboratories-ltd" target="_blank" data-smartkarma-citation="entities:16406:1" rel="noopener">Dr. Reddy's Laboratories (DRRD IN)</a> has signed a definitive agreement with <a href="https://www.smartkarma.com/entities/haleon-plc" target="_blank" data-smartkarma-citation="entities:36122:1" rel="noopener">Haleon (HLN LN)</a> to acquire latter’s global portfolio of consumer healthcare brands in the nicotine replacement therapy outside US.</li>
<li>The company will acquire the portfolio for a total consideration of £500M ($633M). In 2023, the portfolio generated ~£217M ($274M) revenue. Purchase consideration values the business at EV/sales of 2.3x.</li>
<li>The acquisition will not stretch the balance sheet as Dr. Reddy’s has a cash balance of $990M as on March 31, 2024. The transaction is expected to complete in 4Q24.</li>
</ul>



Dr. Reddy's Laboratories (DRRD IN) has signed a definitive agreement with Haleon (HLN LN) to acquire latter’s global portfolio of consumer healthcare brands in the nicotine replacement therapy outside US.
The company will acquire the portfolio for a total consideration of £500M ($633M). In 2023, the portfolio generated ~£217M ($274M) revenue. Purchase consideration values the business at EV/sales of 2.3x.
The acquisition will not stretch the balance sheet as Dr. Reddy’s has a cash balance of $990M as on March 31, 2024. The transaction is expected to complete in 4Q24.


Dr. Reddy's Laboratories (DRRD IN): Nicotinell Acquisition to Fortify Consumer Healthcare Business

Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

Glenmark Pharmaceuticals / Forensic Accounting

<ul>
<li>
<a href="https://www.smartkarma.com/entities/glenmark-pharmaceuticals-ltd" target="_blank" data-smartkarma-citation="entities:10454:1" rel="noopener">Glenmark Pharmaceuticals (GNP IN)</a> FY24 results have seen PBT reducing from INR 2.4 bn to INR 365 mn i.e. by nearly 85%. </li>
<li>This was on account for exceptional line items, which included gains from sale stake in Glenmark Lifesciences, but was offset by losses pertaining to legalities and heavy impairment in assets.</li>
<li>The habit of having exceptional items, especially impairments is not something new or one-offs. There have been regular impairments carried in the past as well. </li>
</ul>



Glenmark Pharmaceuticals (GNP IN) FY24 results have seen PBT reducing from INR 2.4 bn to INR 365 mn i.e. by nearly 85%. 
This was on account for exceptional line items, which included gains from sale stake in Glenmark Lifesciences, but was offset by losses pertaining to legalities and heavy impairment in assets.
The habit of having exceptional items, especially impairments is not something new or one-offs. There have been regular impairments carried in the past as well. 


Glenmark Pharma- Value Erosion Not Something New

Equity Bottom-Up

<ul>
<li>In Q4FY24, <a href="https://www.smartkarma.com/entities/cipla-ltd" target="_blank" data-smartkarma-citation="entities:3918:1" rel="noopener">Cipla Ltd (CIPLA IN)</a> posted 10% YoY revenue growth to INR61.6B. Despite surging R&amp;D expenditure, EBITDA increased 13% YoY to INR13B, leading to 54bps margin expansion to 21.4%.</li>
<li>New launches in U.S. and outperformance in the domestic market driven by chronic portfolio should drive the growth. For FY25, the company has guided for EBITDA margin of 24.5–25.5%.</li>
<li>Cipla shares soared 15% YTD. Last week, the promoters, Hamied family sold 2.5% stake in the company for ~INR26B, igniting a rally in share price.</li>
</ul>


In Q4FY24, Cipla Ltd (CIPLA IN) posted 10% YoY revenue growth to INR61.6B. Despite surging R&amp;D expenditure, EBITDA increased 13% YoY to INR13B, leading to 54bps margin expansion to 21.4%.
New launches in U.S. and outperformance in the domestic market driven by chronic portfolio should drive the growth. For FY25, the company has guided for EBITDA margin of 24.5–25.5%.
Cipla shares soared 15% YTD. Last week, the promoters, Hamied family sold 2.5% stake in the company for ~INR26B, igniting a rally in share price.


Cipla (CIPLA IN): Strong Q4 Performance; Future Growth Drivers Being Added; Promoter Stake Sale

India

Sun Pharmaceutical Industries Limited manufactures and markets pharmaceuticals for domestic and international distribution. The Company's pharmaceutical portfolio includes drugs in the areas of diabetes, cardiology, neurology, psychiatry and  gastroenterology.

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Sun Pharmaceutical Industries (SUNP IN)

Emcure Pharmaceuticals Pre-IPO - Refiling Updates and Valuations

Emcure Pharmaceuticals is looking to raise around US$240m in its upcoming India IPO. In this note, we talk about valuations.

Sumeet Singh

Emcure Pharmaceuticals Pre-IPO: IPO Price Band Set; Steep Valuation Offers Limited Upside Potential

Emcure Pharmaceuticals seeks to raise INR19.5B through fresh issue of INR8B and an OFS of 11.4M shares. The issue will open for subscription on...

Tina Banerjee

Dr. Reddy's Laboratories (DRRD IN): Nicotinell Acquisition to Fortify Consumer Healthcare Business

Dr. Reddy's is acquiring Haleon’s global portfolio of consumer healthcare brands in the nicotine replacement therapy outside US for £500M ($633M)....

Tina Banerjee

Glenmark Pharma- Value Erosion Not Something New

Glenmark Pharmaceuticals FY24 results show 85% decrease in PBT due to exceptional items like sale gains and asset impairments. Regular impairments...

Nitin Mangal

Cipla (CIPLA IN): Strong Q4 Performance; Future Growth Drivers Being Added; Promoter Stake Sale

Cipla reports double-digit revenue and EBITDA growth, and margin expansion in Q4, riding on US, India, and South Africa businesses. For FY25, the...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

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Emcure Pharmaceuticals Pre-IPO - Refiling Updates and Valuations

Emcure Pharmaceuticals is looking to raise around US$240m in its upcoming India IPO. In this note, we talk about valuations.

Sumeet Singh

Emcure Pharmaceuticals Pre-IPO: IPO Price Band Set; Steep Valuation Offers Limited Upside Potential

Emcure Pharmaceuticals seeks to raise INR19.5B through fresh issue of INR8B and an OFS of 11.4M shares. The issue will open for subscription on...

Tina Banerjee

Dr. Reddy's Laboratories (DRRD IN): Nicotinell Acquisition to Fortify Consumer Healthcare Business

Dr. Reddy's is acquiring Haleon’s global portfolio of consumer healthcare brands in the nicotine replacement therapy outside US for £500M ($633M)....

Tina Banerjee

Glenmark Pharma- Value Erosion Not Something New

​Glenmark Pharmaceuticals FY24 results show 85% decrease in PBT due to exceptional items like sale gains and asset impairments. Regular impairments...

Nitin Mangal

Cipla (CIPLA IN): Strong Q4 Performance; Future Growth Drivers Being Added; Promoter Stake Sale

​Cipla reports double-digit revenue and EBITDA growth, and margin expansion in Q4, riding on US, India, and South Africa businesses. For FY25, the...

Tina Banerjee

Glenmark Pharmaceuticals FY24 results show 85% decrease in PBT due to exceptional items like sale gains and asset impairments. Regular impairments...

Cipla reports double-digit revenue and EBITDA growth, and margin expansion in Q4, riding on US, India, and South Africa businesses. For FY25, the...